CIBC has increased its price target for Franco-Nevada (FNV, Financial) from C$290 to C$315, while maintaining an Outperformer rating on the stock. This adjustment reflects positive expectations for the company's future performance. Investors in FNV may find this information useful as part of their investment strategy.
FNV Key Business Developments
Release Date: May 09, 2025
- Total Revenue: $368.4 million, a 43% increase from $256.8 million last year.
- Adjusted EBITDA: $321.9 million, up 49% from $216.1 million in Q1 2024.
- Adjusted Net Income: $205.6 million or $1.07 per share, both up 51% year-over-year.
- Total GEOs Sold: 126,585, a 3% increase from 122,897 in Q1 2024.
- Net GEOs Sold: 113,138, a 6% increase from 106,681 in Q1 2024.
- Precious Metal GEOs Sold: 100,623, an 8% increase from the prior year.
- Cash Cost per GEO: $304, compared to $273 in Q1 2024.
- Margin per GEO: Over $2,500 in Q1 2025.
- Cost of Sales: $38.5 million, up from $33.6 million last year.
- Depletion: $68.4 million, compared to $58.2 million a year ago.
- Available Capital: $1.9 billion, including a $1 billion credit facility.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Franco-Nevada Corp (FNV, Financial) reported record financial results for the first quarter of 2025, achieving the highest quarterly top and bottom line results in its history.
- The company benefited from elevated gold prices, with the average gold price increasing by 38% year-over-year, contributing significantly to revenue growth.
- Franco-Nevada Corp (FNV) ended the quarter debt-free and with $2.1 billion in available capital, positioning it well for future growth opportunities.
- The company closed a $500 million acquisition of a stream on Sibanye-Stillwater's Western Limb mining operations, enhancing its asset base.
- Franco-Nevada Corp (FNV) reported a 43% increase in total revenue compared to the previous year, driven by strong production and higher precious metal prices.
Negative Points
- The company experienced a decrease in diversified GEOs sold, with a reduction of approximately 4,000 GEOs due to the impact of higher gold prices when converting revenue to GEOs.
- Depletion costs increased to $68.4 million from $58.2 million a year ago, impacting overall profitability.
- Franco-Nevada Corp (FNV) faces ongoing uncertainty regarding the Cobre Panama mine, with discussions about the mine's future still unresolved.
- The company noted volatility in palladium and oil prices, which were lower compared to the prior year, potentially affecting future revenue streams.
- Franco-Nevada Corp (FNV) highlighted a three-month delay between production and delivery of GEOs, which could impact cash flow timing.
